Individual Income Tax

Form INC 250 Individual Income Tax Return 

Corporate Income Tax

Form BUS 415 County Business Tax Return 

Form BUS 416 Municipal Business Tax Return

Tennessee Income Tax Forms: Everything You Need to Know

When it comes to filing taxes, one of the most important things to know is which forms to use. This is especially true for residents of Tennessee, as the state has its own unique income tax system. In this article, we’ll explore everything you need to know about Tennessee income tax forms, including what they are, how to fill them out, and where to find help if you need it.

What are Tennessee Income Tax Forms?

Tennessee state income tax forms are documents used to report your taxable income to the state government. If you are a resident of Tennessee and earn income, you are required to file these forms each year. Tennessee is one of nine states that does not have a traditional income tax (like the federal government does), but instead has a tax on interest and dividends. This is commonly referred to as the “Hall Tax.”

There are three main forms you may need to use when filing your Tennessee income tax: the Hall Income Tax Return (Form INC-250), the Business Income Tax Return (Form FAE 170), and the Individual Taxpayer Extension Request Form (Form INC-251). Let’s take a closer look at each of these forms.

Hall Income Tax Return (Form INC-250)

As mentioned, Tennessee does not have a traditional income tax. Instead, the state levies a tax on interest and dividend income. This tax is known as the Hall Tax. If you received any interest or dividend income during the year, you will need to file a Hall Income Tax Return using form INC-250.

The Hall Tax applies to both in-state and out-of-state interest and dividend income, but there are some exceptions. For example, you may be able to exclude certain types of income if you are a resident of another state and earned the income there.

When filling out your Hall Income Tax Return, you will need to report all of your interest and dividend income, including any that was earned outside of Tennessee. You will also need to calculate the tax you owe based on your income level and file by April 15th of each year.

Business Income Tax Return (Form FAE 170)

If you own a business in Tennessee, you will need to file a Business Income Tax Return using form FAE 170. This form is used to report your business’s income and calculate the amount of tax you owe.

There are some exceptions to this requirement, though. If your business is a sole proprietorship or a single-member LLC, you can report your business income on your personal income tax return (using form INC-250). Additionally, if your business’s gross sales are less than $10,000 per year, you may be exempt from filing a business income tax return altogether.

When filing your business income tax return, you will need to report all of your business’s income, deductions, and expenses. You will also need to calculate your net income and the amount of tax you owe based on your business type and income level.

Individual Taxpayer Extension Request (Form INC-251)

If you need more time to file your Tennessee income tax return, you can request an extension using form INC-251. This form allows you to extend your filing deadline by up to six months, giving you more time to gather all of your necessary tax documents and file your return accurately.

It’s important to note that this extension only applies to the deadline for filing your return, not for paying any taxes owed. If you owe taxes, you will still need to make a payment by the April 15th deadline to avoid penalties and interest.

How to Fill Out Tennessee Income Tax Forms

Filling out Tennessee income tax forms can be a daunting task, especially if you are not familiar with tax laws and regulations. However, there are several resources available to help you through the process.

First, it’s important to gather all of your necessary tax documents before beginning the process of filling out your forms. This may include your W-2 or 1099 forms, bank statements, and any other documentation related to your income and expenses.

Once you have all of your documents in order, you can begin filling out your forms. It’s important to read the instructions carefully and double-check all of your entries to ensure accuracy. Mistakes on your tax forms can lead to penalties and audits, so taking the time to fill them out correctly is crucial.

If you need help filling out your Tennessee income tax forms, there are several resources available. You can visit the Tennessee Department of Revenue’s website for information and guidance, or you can reach out to a tax professional for assistance. Additionally, the state offers several free tax preparation services for low-income individuals and seniors.

Where to File Tennessee Income Tax Forms

Once you have filled out your Tennessee income tax forms, you will need to file them with the state. There are several methods for submitting your forms.

The easiest way to file is online using the Tennessee Department of Revenue’s website. This method allows you to file for free and receive a faster refund than paper filing. You can also pay any taxes owed using a credit card or electronic check.

If you prefer to file a paper return, you can download the necessary forms from the Department of Revenue’s website or request them by mail. Once you have completed your forms, you can mail them to the address listed on the form.

If you need to make a payment with your paper return, you can do so using a check or money order. Be sure to include your payment with your return and double-check that all information is accurate before sending it in.

Final Thoughts

Filing your Tennessee income tax forms may seem like a daunting task, but with the right preparation and resources, it can be a smooth and stress-free process. Remember to gather all of your necessary documents, double-check your entries for accuracy, and file your forms by the deadline to avoid penalties and interest.

If you need help at any point during the process, don’t hesitate to reach out to the Tennessee Department of Revenue or a tax professional for assistance. With a little patience and attention to detail, you can successfully file your Tennessee income tax forms and fulfill your tax obligations to the state.